So, That's how oild prices work !

[sanjuro_ronin]

http://oilprice.com/Latest-Energy-News/World-News/Broker-Sent-Oil-Prices-to-Eight-Month-High-in-a-Drunken-Stupor.html

On June the 30th 2009 oil mysteriously jumped by more than $1.50 a barrel during the night, to reach its highest price in eight months, the kind of swing that is caused by a major geopolitical event.

The amazing, true cause of this price spike has now been released by a Financial Services Authority investigation (FSA).

Although not authorised to invest company cash in trades Steve Perkins, a long standing, senior broker at PVM Oil Futures, had managed to spend $520 million on oil futures contracts throughout the night.

On the morning of the 30th an admin clerk called Mr Perkins to ask why he had bought 7 million barrels of crude during the night. Mr Perkins had no recollection of the transactions, and it turned out that he had made the trades during a “drunken blackout.”

By the time PVM had realised the transactions had not been authorised by a client, they had incurred losses of $9,763,252.

Between the hours of 1.22am and 3.41am, Mr Perkins gradually bought 69 percent of the global market, whilst driving prices up from $71.40 to $73.05, by bidding higher each time.

[Syn7]

Smells like a scam to me. You really gotta wonder. A five year suspension and a 75,000 pound fine seems like a lot, but it pales in comparison to the amount of money that could have been made with this kind of inside knowledge.

A 9 mill loss ain't sh1t compared to what could have been made on the side. Let the company suffer and the main players reap the rewards personally. Wouldn't be the first time somebody who was well respected sh1t all over their employers to make a grip.

I dunno, I see red flags here. Ya never know tho, I guess this could just be a drunken mistake.

[Lucas]

Smells like a scam to me. You really gotta wonder. A five year suspension and a 75,000 pound fine seems like a lot, but it pales in comparison to the amount of money that could have been made with this kind of inside knowledge.

A 9 mill loss ain't sh1t compared to what could have been made on the side. Let the company suffer and the main players reap the rewards personally. Wouldn't be the first time somebody who was well respected sh1t all over their employers to make a grip.

I dunno, I see red flags here. Ya never know tho, I guess this could just be a drunken mistake.

i'm in line with you. huge red flag. No body blacks out and does gradual online trading for two and a half hours......thats bull ****e

[mawali]

SInce computerized trading is the norm these days, one could get enough co-conspirators to buy/bid high enough for a spike to register, then increase the block with a higher ROI then collect royally.

[MasterKiller]

Oil should be at an all time low right now. The US is actually EXPORTING oil. But because of the weak dollar, people keep investing in oil futures and it artificially drives the price up

Because it's so easy to drive the price up, it wouldn't surprise me in the least to find out influential people were buying futures just to raise the price and keep it up.

Remember when Republicans (ahem...1bad65...) were saying gas was so high because of massive increases in global fuel consumption? That was a pure smokescreen because they wanted to be able to assign more drilling leases (hence, drill baby drill).

[Syn7]

Yeah, but it's not like 1bad knew what he was talking about. He was just repeating what his fav talking heads said the night before.



I dunno Lucas, you can do weird sh1t when drunk.

The flag for me was that every bid increasingly got higher and higher and that's what drove up the prices.



By the way, half a billion isn't anywhere near enough to buy 65% of the global market, That number is a misrepresentation. Probably 65% of a daily limit on trade, or something like that. Remember, we are talking oil futures here.

[Syn7]

Ok so the 69% was the volume of oil being traded at some times during his lil adventure. Meaning it was as high as 69% of all trades at certain moments. Hardly "69 percent of the global market". While still an accurate statement, it's quite misleading. Yes it was 69% of the available market at certain points in the evening but not 69% of the market as a whole. Still, it was up to 10 times the average at times. That's gotta have an impact.

Maybe he was manipulated while drunk and helped facilitate fraud without knowing it and later he either doesn't remember or he knows he did something REALLY bad and isn't talking. "I blacked out and can't remember" is very convenient, but very possible. Remember, he called in sick and then lied when asked at first. Said he was trading for a client. Only later when PVM proved he was lying did the drunken story come out. White collar crime usually has a fall guy and the fall guy is usually in on it and willing to take the hit. Just like in 08 with the wall st. firms. People lost jobs but most of the money is still in the pockets of those that stole it. It's very hard to prove a widespread conspiracy that probably has no center of power. More likely one guy did it then others said "yeah, I can do that too" and it fukced the rest of us. Now that is what I call redistribution of wealth.


Anyways, back to PVM. Another very important factor here is that 2 days after the sanctions were handed down Perkins was hired by Starsupply Renewables. So did they snatch up a talent(who needs help, but still a talent) for cheap because of the position he was in? Or was that just the first step in the rehab of his career and image by the dark hands behind the scheme? I dunno, the more I read this the more I believe the official story. I'm on the fence with this one.

But hey, at least I got to learn a grip about oil futures

[sanjuro_ronin]

Personally I just thought the whole thing was hilarious.
The stock markets has become a bit of a joke, a very dangerous joke mind you, but a joke.
Why?
Because there is actually no REAL value in most of the products being traded and what value they have is can easily be manipulated by even just 1 person.
As the article showed.

[Syn7]

Personally I just thought the whole thing was hilarious.
The stock markets has become a bit of a joke, a very dangerous joke mind you, but a joke.
Why?
Because there is actually no REAL value in most of the products being traded and what value they have is can easily be manipulated by even just 1 person.
As the article showed.

More scary than funny. Another example of people keeping themselves on top by any means necessary. Who cares how it affects the little people.